Venture Capital's Evolution: A Call for Purposeful Investment
Amsterdam, Monday, 8 December 2025.
Adeo Ressi highlights venture capital’s shift towards ethical investments, stressing the need for funding that prioritizes long-term value and societal impact over rapid scalability.
The Historical Context of Venture Capital
Adeo Ressi, founder of TheFunded, reflects on the evolution of venture capital since 2006. Initially, the ecosystem lacked accountability, with investors often prioritizing profits over ethical considerations. This environment allowed for behavior that overlooked the broader implications of investment decisions. TheFunded aimed to empower entrepreneurs by providing a platform to rate their experiences and hold investors accountable, leading to surface-level improvements in investor-entrepreneur relations [2].
Persisting Challenges and the Need for Change
Despite these improvements, Ressi notes that fundamental challenges persist. Venture capital still largely prioritizes ventures promising rapid scalability over those with social or environmental benefits. This approach has resulted in substantial funding for companies with questionable missions while innovations in critical areas like healthcare and sustainability struggle for support [2]. Ressi argues that this reflects a systemic issue, where the focus remains on extraction rather than genuine creation [2].
A Shift Toward Ethical Investing
Ressi is advocating for a transformation within venture capital to align investments with ethical principles. He envisions a new infrastructure that supports mission-driven companies, backed by visionary limited partners and ethical managers. The Mensarius Oath is one initiative encouraging investors to commit to these principles, indicating a growing demand for more responsible investment practices [2].
The Future of Venture Capital
The shift towards ethical investing is not merely about sacrificing returns. Ressi believes that aligning capital with purpose can unlock innovation and create lasting value. He highlights that transformative change is underway, with thousands of investors embracing ethical guidelines and entrepreneurs focusing on regenerative, rather than extractive, business models [2]. This evolution aims to ensure that venture capital serves its highest purpose, contributing to a more sustainable and impactful economic landscape [2].